Why is TNXP's stock trending downward?

Tonix Pharmaceuticals' (TNXP) stock experienced a significant decline of 21.97% on August 19, which can be attributed to the following factors:

1. **Post-Approval Volatility**: The FDA approval of Tonmya, while initially boosting the stock 12.58% pre-market on August 18, was followed by a substantial post-approval decline of 21.6% on August 19. This volatility reflects investor uncertainty and potential skepticism about the drug's commercial success and the company's financial viability.
2. **Market Concerns Over Commercial Success and Financial Health**: The market's reaction to the approval is complex. Although the approval is a significant milestone, concerns about the drug's commercial success and the company's financial health may have led to a sell-off. The projected peak U.S. sales of $800 million for Tonmya, estimated by the company, may not have fully alleviated investor fears about the drug's market penetration and revenue generation.
3. **Pricing and Reimbursement Risks**: The pricing of Tonmya at $250/month, compared to generics expected to cost between $150–200/month, may raise concerns about competitive pricing power and patient affordability. Additionally, reimbursement negotiations and formulary placement are critical for market penetration, and these uncertainties could have contributed to the stock's decline.
4. **Financial Performance and Valuation Concerns**: Tonix's Q2 2025 earnings revealed a net loss of $28.3 million, an improvement from the previous quarter's $78.8 million loss but indicative of ongoing financial challenges. The company's valuation concerns, including a negative P/E ratio, may have influenced the stock's downward trend.

In summary, TNXP's stock decline is likely a result of a combination of factors including post-approval volatility, market concerns over commercial success and financial health, pricing and reimbursement risks, and financial performance and valuation concerns.

|code|Ticker|Name|Date|Percentage Change|market_code|
|---|---|---|---|---|---|
|TNXP|TNXP.O|Tonix|20250819|-9.508360369353637|186|